IRAs & SEP Plans

IRAs and SEPs provide a great way to build retirement savings. Middleburg Bank offers access to both traditional and Roth IRAs as well as SEP plans.

IRA

Whether you are just beginning to save for retirement or you already have a retirement plan in place — an Individual Retirement Account (IRA) can be a smart and easy way to save as part of your overall retirement plan.

IRAs combine two powerful forces — compounded interest and tax-deferred interest — and are available in a variety of forms:

Traditional IRAs allow your investment earnings to grow tax-deferred, so you pay taxes only when you withdraw funds. Plus, contributions made to your Traditional IRA may be tax deductible in the year they are made.

Roth IRAs allow your investment earnings to grow tax-deferred, and all withdrawals are federal income tax and penalty-free, including earnings — assuming you are over 59 1/2 years old and your account has been open for at least five tax years when you make your withdrawals. Unlike Traditional IRAs, not everyone qualifies for a Roth, and contributions to Roth IRAs are never deductible.

Consult your tax advisor for information on the tax implications of IRAs.

SEP Plans

A Simplified Employee Pension (SEP) plan is a low-cost retirement plan for small businesses and the self-employed. It may work well if you want a low-cost, easy-to-maintain retirement plan for you and your employees. Both SEP IRA and Traditional IRA contributions can be made to the same account, and you have the flexibility to change how much your business contributes from year to year.

Small business owners can make tax-deductible contributions with this flexible plan that is easy to set up and maintain. If you have employees, you may be required to contribute for them as well.

It is recommended that you consult a tax advisor for your financial situation.

Securities and Advisory services offered through LPL Financial, a Registered Investment Advisor. Member FINRA/SIPC. Insurance products offered through LPL Financial or its licensed affiliates. The investment products sold through LPL Financial are not insured Middleburg Bank deposits and are not FDIC insured. These products are not obligations of the Middleburg Bank and are not endorsed, recommended or guaranteed by Middleburg Bank or any government agency. The value of the investment may fluctuate, the return on the investment is not guaranteed, and loss of principal is possible.